China-based Worksoft Creative Software Technology Ltd. Secures $30 Million in Venture Capital Funding Led by Sequoia Capital.BEIJING -- Worksoft Creative Software Technology Ltd., one of the early pioneers and leading players in the software outsourcing industry in China, announced today it has closed a $30 million Series B venture capital financing To start an own company or to bring a new product to the market, the venture may need to attract financial funding. There are several categories of financing possibilities. If it is a small venture, then perhaps the venture can rely on family funding, loans from friends round led by Sequoia Capital US and Sequoia Capital China. Joining the round were existing investors DCM-Doll Capital Management and Legend Capital. This cooperation marks the first direct investment abroad to China by Sequoia Capital US. This second-round investment will be used to extend Worksoft's aggressive expansion plans, increase its pipeline for a strategy of mergers and acquisitions, and will further accelerate its go-to-market efforts. "Sequoia Capital is a highly distinguished venture capital firm with the expertise and connections to drive value added capabilities for our company. This investment is an endorsement of Worksoft's solid vision and strategy, as well as our excellent range of quality IT services and products," said Chris Chen, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Worksoft. "We are very pleased by the support of Sequoia Capital. We are seeing strong growth and look forward to working with Sequoia Capital to bring our company to its next level of development." "The IT outsourcing industry in China has continued to develop at a very rapid pace. Worksoft is the largest Chinese IT outsourcing provider to US and Europe. Its 11 years of client serving experiences, continuous rapid growth, and an open-minded, cross-cultural management team, are the primary reasons for our investment in Worksoft," said Kui Zhou, Principal of Sequoia Capital China. "We believe that Worksoft has the potential to achieve many breakthroughs in the coming years and we are excited to be able to witness these successes." Global marketing intelligence firm IDC estimates that China's software outsourcing exports reached $600 million in 2004 and forecasts its growth to increase to $4.7 billion by 2009, or a CAGR CAGR See: Compound Annual Growth Rate of 51%. "With its large staff and soup-to-nuts solutions for end users and software vendors, Worksoft has taken a market leadership position among China's outsourcing firms," said MR Rangaswami, Managing Director of the Sand Hill Group, a leading authority on offshoring. "Worksoft's numerous million dollar ODCs (offshore development centers) are unique in the China market," added Erran Carmel, Professor at American University and author of the book, Offshoring Information Technology. "Bolstered by an increasingly strong software-outsourcing market in China, Worksoft has executed exceedingly well since our initial investment," said Rob Theis, a DCM DCM abbr. Distinguished Conduct Medal General Partner. "Its long roster of brand-name customers, strong customer satisfaction and high level of sustained technology innovation reaffirm that its vision and business objectives are precisely aligned with the direction of the market." Worksoft Creative Software Technology Ltd. (Worksoft) is the leading China-based provider of outsourced business software solutions to Global 2000 firms. The Company's client roster includes Blue Chip names such as IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) , Oracle, Microsoft, TIBCO TIBCO The Information Bus Company , Hewlett-Packard, General Electric, Matsushita, Sony and Roche. Worksoft's reputation is based on its ability to deliver world class IT solutions to clients worldwide, maximizing their return on investment and giving them The Power to Focus(TM). The Power to Focus(TM) is Worksoft's accelerated software development and business optimization process, giving client organizations the power to focus on core services and have peace of mind. Worksoft offers scale, efficiency, quality, and an expert pool of international talent and management to deliver a high degree of performance to clients worldwide. About Worksoft Creative Software Technology Ltd. Worksoft Creative Software Technology Ltd. is one of the early pioneers and leading players in the software outsourcing industry in China. The company works with global corporations and new generation technology companies to maximize their return on investment and give them The Power to Focus(TM). Worksoft delivers packaged software applications integration, application development and maintenance, software product development, quality assurance and testing, globalization and localization Customizing software and documentation for a particular country. It includes the translation of menus and messages into the native spoken language as well as changes in the user interface to accommodate different alphabets and culture. See internationalization and l10n. and business process outsourcing Business process outsourcing (BPO) is the contracting of a specific business task, such as payroll, to a third-party service provider. Usually, BPO is implemented as a cost-saving measure for tasks that a company requires but does not depend upon to maintain its position in services to global clients. Worksoft has offices in Beijing, Shanghai, Shenzhen, Dalian, Xi'an, Wuhan, Changsha, Silicon Valley and Japan. With nearly 2,000 employees worldwide, Worksoft is the ideal partner to conceptualize and realize technology-driven business transformation initiatives. By targeting a dynamic environment where business needs and technology strategy converge, Worksoft delivers a high degree of performance in cost, quality, and efficiency. For more information on Worksoft visit http://www.worksoft.com.cn. About Sequoia Capital Sequoia Capital provides startup venture capital for very smart people who want to turn ideas into companies. As the "Entrepreneurs Behind the Entrepreneurs," Sequoia Capital's Partners have worked with innovators such as Steve Jobs of Apple Computer, Larry Ellison of Oracle, Bob Swanson of Linear Technology, Sandy Lerner and Len Bozack of Cisco Systems, Dan Warmenhoven of Network Appliance, Jerry Yang and David Filo of Yahoo!, Jen-Hsun Huang of nVIDIA, Michael Marks of Flextronics and Larry Page and Sergey Brin of Google. Sequoia Capital China was founded by Neil Shen Shen, in the Bible, place, perhaps close to Bethel, near which Samuel set up the stone Ebenezer. , co-founder, former president and CFO See Chief Financial Officer. of CTrip, and Fan Zhang, venture capitalist who invested in Baidu, Kongzhong, and Focus Media. To learn more about Sequoia Capital visit www.sequoiacap.com. About DCM-Doll Capital Management DCM is a top-performing venture capital firm supporting entrepreneurs building early stage technology companies. DCM manages over $1 billion and has funded leading technology companies including BitTorrent, 2Wire, 51job (Nasdaq:JOBS), About.com (Primedia), Foundry Networks (Nasdaq:FDRY), HireRight, Internap (AMEX AMEX See: American Stock Exchange :IIP IIP Investors In People IIP International Information Programs (US State Department) IIP Index of Industrial Production IIP Iraqi Islamic Party IIP International Ice Patrol (US Coast Guard) ), IPivot (Intel), Kabu.com (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :8703), nQuire (Siebel), PGP Corporation, Recourse Technologies (Symantec), SMIC SMIC Salaire Minimum Interprofessionnel de Croissance (French: guaranteed minimum wage) SMIC Semiconductor Manufacturing International Corp (Shanghai) SMIC Side Mount Intercooler (NYSE NYSE See: New York Stock Exchange :SMI (1) (Storage Management Initiative) The initiative developed by the SNIA in 2003 to create a single standard interface for storage management technologies used by multiple vendors and networking communities. ), and Sigmatel (Nasdaq:SGTL SGTL Silicon Graphics Teaching Laboratory ). DCM offers hands-on operational guidance and access to an extensive network of resources, including close relationships with many of the Pacific Rim's leading companies and investors. Visit DCM's Website at www.dcmvc.com. About Legend Capital Founded in April 2001, Legend Capital is an independent venture capital subsidiary of Legend Holdings Ltd. focused on driving high-growth IT investments in China and China-related companies at the start-up and expansion stages. Managing up to US$300 million and with 40 investments across three funds under management, successful investments include Joyo.com (acquired by Amazon.com) and SinoCom Software Group Ltd. (HKEX:299). Legend Capital invests in companies in Internet applications and services, wireless applications and services, outsourcing,digital media and IC design/key components, as well as selected non-IT industries. Legend Capital provides its portfolio companies extensive business resources to assist with business development, company image building, and other critical company building activities in the China market. Visit Legend Capital's website at http://www.legendcapital.com.cn/. |
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